Write a user-defined function to calculate a firm's return on equity using the DuPont method as defined

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Write a user-defined function to calculate a firm's return on equity using the DuPont method as defined by (4-29) on page 125. You will need the function to accept three arguments: the net profit margin, total asset turnover ratio, and the debt ratio. Now, write another function to calculate the extended DuPont ROE as defined in equation (4-33) on page 126. This second function will require five arguments: the operating profit margin, interest burden, tax burden, total asset turnover, and the debt ratio.
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Financial Analysis with Microsoft Excel

ISBN: 978-1285432274

7th edition

Authors: Timothy R. Mayes, Todd M. Shank

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